Stock analysis is used by traders to make buy and sell call. It’s an approach to make informed decisions while investing in stocks. Stock analysis can be categorised into – fundamental analysis and technical analysis. Fundamental analysis is evaluation of data from sources, including financial records, economic reports, company assets, and market share. Analysts typically study the company’s financial statements – balance sheet, income statement, cash flow statement, and footnotes. These statements are made available to the investors in the form of quarterly earnings, disclosures to stock exchanges in compliance with the Securities and Exchange Board of India (Sebi) norms. In fundamental analysis, the analysts particularly check for a company's core income, income from other sources, profitability, guidance, assets and liabilities and debt ratio among other parameters. The other method, i.e. the technical analysis focuses purely on statistical data. It works on two assumptions; one, the stock price reflects the fundamentals. Second, the study of past and present movement in prices can help determine the future price trends. Technical analysis primarily deals with price, volume, demand and supply factors. This method is effective only when supply and demand forces influence the market. However, when outside factors are involved in a price movement, technical analysis may not be successful. More
The only concern is the banking index, which has shown a relative underperformance. But this index is still in a consolidation phase, and there's a good probability of some buying interest emerging. This would further support the benchmark, says one analyst.
Near-term support for Nifty is placed near the 15,650 level and once the previous high of 15,915 is sustainably breached, it could rise towards the 16,000 mark and even higher.
There could be some impact of COVID-19 on economic and earnings growth -- at least in the first quarter of FY22. This would ultimately hit full-year growth to some extent, but there could be faster recovery, post the second wave.
In these uncertain times, when markets are volatile as the country grapples with the frightening rise in COVID-19 infections, experts say investors should go for quality large-cap stocks and use any near-term correction to pick up such shares.
LIC Housing Finance is the fresh addition in its portfolio as it is a value play (1.0x PBV) supported by pick up in home loan demand, and builder NPL resolutions
The sector was in focus in Union Budget 2021. Finance Minister Nirmala Sitharaman in her Budget speech announced an outlay of Rs 2,23,846 crore for health and well being.
The weekly candle gives the replica of a hanging man candlestick pattern but one needs to wait for the next week's candle for the confirmation.
Analysts and brokerage firms are bullish on market prospects as events such as the US election is over and positive reports on the vaccine front are giving hopes that soon COVID-19 will be under control.
Prabhudas Lilladher believes that current uncertainty is a passing phase and return to normalcy will result in several beaten down segments bouncing back strongly from FY22.
With midcaps and smallcaps expected to outperform largecaps, especially after September quarter earnings, this is the right time to build a portfolio, analysts have said.
The benchmark indices and broader markets have rallied more than 55 percent from the lows of March 23, though they have been some correction in the last few sessions.
While the market has rallied smartly, the rally has been highly concentrated with the top 15 stocks contributing over 70 percent of the returns.
IT and pharma are preferred themes by experts after June quarter earnings
Interventions by governments and central banks have prevented the economic situation from deteriorating significantly but it is unlikely that the recovery will be a V-shaped one, say experts.
Technically the index has been scaling higher with narrow ranged candles but the momentum indicators are diverging & indicating lack of strength.
After some tough years, the pharma sector is performing well and is around 25 percent up while the broader market is down 20 percent year-to-date.
Experts and analysts expect a change in market leadership in the post-COVID world in which telecom, healthcare, speciality chemicals, and rural consumers may dominate other sectors.
On the higher side, 10,334 - 10,351 will continue to act as a stiff resistance zone for Nifty which needs to be taken out on a closing basis for the extension of the rally.
Aashish Somaiyaa of Motilal Oswal Asset Management Company advised that one should avoid panic and remain invested.
Experts continue to warn that the market will keep oscillating between rise and fall and one must remain cautious while taking a call for trade.
The Nifty Pharma index gained half a percent on May 7, taking gains to around 45 percent since March 23.
Experts point out that the COVID-19 pandemic came in stages across the world and its fading away also will happen in phases over the next few quarters.
The panic created by COVID-19 has taken a heavy toll on most sectors but pharma companies seem to have withstood the carnage, with some stocks delivering healthy returns during this period.
If VIX sustains above 50 levels, then pressure can be seen in the market. It needs to move below 40 levels for stability to return in the market.
Sudarshan Sukhani of s2analytics.com recommends buying Asian Paints with stop loss at Rs 1825 and target of Rs 1890 and Pidilite Industries with stop loss at Rs 1540 and target of Rs 1645.